Bulyanhulu to finish diamond tests

SPARKLE: A rich find could earn Tanzania millions since diamonds remain a prized item globally.

DAR ES SALAAM, Tanzania – Bulyanhulu Gold Mine, one of the three gold miners owned by Africa Barrick Gold said, it plans to complete the initial phase of deep diamond core drilling testing extensions to Reef 1 between 400 meters and 1.2 kilometers.

The gold miner said in a statement that the deep diamond core drilling testing of the currently delineated resources aimed to identify economic grades and widths amenable to underground mining.

At the same time, the miner said “we plan to continue underground step-out drilling on the Reef 2 system in order to further expand the resource in key areas for the life of mine.”

“This project is focused on expanding resources at Bulyanhulu on both the Reef 1 and Reef 2 structures in areas where limited to no historic drill testing has been undertaken,” it said.

The objective is to add 5 million ounces of high grade mineable resources to the resource base in order to provide increased flexibility to mining operations and the potential to increase production in the medium to longer term, it added.

Review of historical drilling on Reef 1 and Reef 2 has highlighted the potential to add high grade resource ounces to the west of the currently delineated resources on both Reef 1 and Reef 2.

In addition, the surface and underground drilling that commenced in late 2013, has already intersected typical (width and grade) Reef 1 and Reef 2 gold mineralization.

The gold miner said it continues to make progress on her expansion projects with the commencement of commissioning of the Bulyanhulu CIL Expansion, approval for an underground portal at North Mara.

The statement from the company said it has also approval the Upper East Zone at Bulyanhulu which together will further drive the business forward.

“We remain on track to achieve our guidance of 650,000-690,000 ounces of gold production at AISC per ounce of between $1,100 and $1,175,” the statement quoted the Plant Manager, Webiro Kizuri said.

Bulyanhulu Gold Mine alone set to use $167 million building a gold mine plant. The move is aiming at recovering more gold from materials left after the extraction of ore.

The construction of the plant would be for reclaiming the current tailing storage facility and treating tailings.

ABG reports first quarter 2014 results which show that it has delivered another strong set of results, with production of 168,375 ounces and all-in sustaining costs of $1,131 per ounce, “our sixth successive quarterly reduction in AISC.”

ABG’s Chief Executive Officer, Brad Gordon said, “As a result of our continued cost discipline we generated positive cash from the operations during the quarter and continue to expect to be cash flow positive for the full year,” he said. Bulyanhulu’s life-of-mine is currently estimated to be more than 25+ years, based on its proven and probable gold reserves of 9.4 million ounces.

By Leonard Magomba, Sunday, May 25th, 2014


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